finance webinar with ventana research and anaplan: enabling advanced decision making

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Meredith HobikDirector Product Marketing – FinanceAnaplan

Robert D. KugelCFA, SVP & Research Director - CFO and Business ResearchVentana Research

linkedin.com/in/meredithhobik @anaplan_MH

linkedin.com/in/robertkugel @rdkugelvr

Today’s speakers

© 2016 Ventana Research4 © 2016 Ventana Research

Digitally Transforming Planning

Creating a 21st Century FP&A Organization

Robert Kugel, SVP & Research Director

© 2016 Ventana Research5 © 2016 Ventana Research5

Digital Transformation:Rethinking and redefining core business processes to exploit the advantages

of digital technology.


Why Companies Plan


PLAN

Companies Do A Lot of PlanningPlanning is pervasive but not always formal and rarely coordinated.

Budget

Marketing

Sales Forecast

S&OPSupply Chain

Workforce

ProjectStrategic

Long-Range

IT Spend

Demand

Capital Spending


Transforming Business Planning Integrated business planning to improve business performance and management effectiveness.

Integrated Business

Plan

Budget Marketing

Sales Forecast

S&OP

Supply Chain

Workforce

Project

Strategic Long-Range

IT Spend

Demand

Capital Spending


80% of companies that manage their planning process well have plans that are accurate or very accurate.

A Quality Process Drives Accuracy

Companies that integrate their plans have a process that works well or very well.


Achieve Better Strategic Alignment

Effective planning processes promote

alignment within and across business units.


Collaboration is Essential

• 85% of companies that collaborate effectively have well-managed planning processes• 11% of companies

that don’t collaborate effectively manage planning well.Source: Ventana Research

Next Generation Business Planning

Only Half Collaborate Effectively

Very effectively12%

Effec-tively42%

Somewhat effec-tively37%

Not effectively10%


Not A Tool For Every Problem

The road to hell is paved with Excel.


Planning Demands Participation

Integrated Financial Forecast

and Plan


Aggregating data consumes a considerable amount of time:

81% have to combine data from two or more spreadsheets (often from multiple contributors) to perform some business process.

56% say combining spreadsheets is a time-consuming chore – even experienced, heavy users.

Delays in processes is a common issue:26% find processes are regularly or frequently delayed when spreadsheets are used.

Spreadsheets Are Time Consuming


Business is About DimensionsMost businesses operate in multiple dimensions – characteristics that form the context of all business activities:• Organization (divisions, subsidiaries,

geographies)• Product (families to SKUs)• Customers (national account to ship-to)• Time (years, quarters, months)• Currency (US Dollar, Pound, Euro)Planning, forecasting and reviewing accurately requires software that can manage and manipulate business dimensions.


A Maintenance HeadacheSpreadsheets require hours of ongoing maintenance.• Intensive users of spread-sheets spend an average of 18 hours/month updating, consolidating and revising spreadsheets used in collaborative repetitive processes.• Even casual users must spend one day per month • Eliminating spreadsheet time sinks can free up time for more important tasks.

Source: Ventana Research: Spreadsheets in the Enterprise

Time Spent Maintaining Spreadsheets

All or almost

all

More than half

One fourth to one half

Less than one fourth

18.1

15.7

9.2

8.6 % o

f Tim

e Sp

ent W

orki

ng W

ith S

prea

dshe

ets


Eliminate the time sink that prevents more effective planning and budgeting.


Continuous Planning

Plan

ExecuteEvaluate


Transforming Business Planning Digital technologies can make planning more effective and improve company performance.

Integrated Business

Plan

Budget Marketing

Sales Forecast

S&OP

Supply Chain

Workforce

Project

Strategic Long-Range

IT Spend

Demand

Capital Spending

Q APart 2:

The value of continuous, connected planning

with the Smart Business Platform™

Changing world…

Marketvolatility

Commodity price

fluctuation

Customer

demands

Digital disruptio

n

Increasing demands…Requires more

efficient allocation of capital

More frequent budget

adjustments

Closer collaboration with

the business

Finance

Finance planning challenges remain constant

Spreadsheet hell

Rapidly changing business environment

Financial surprises

Non-standard schema, varying measures &

metrics

Disparate data

Managing plugs

Limited Scale &

Collaboration

No Audit &

Controls

Resource Intensive

Misaligned Plans No

Trust in Data

Siloed Operations

Global vs.Regional

Rigid

MARKETING

SALES

FINANCE

HR

IT

PRODUCTOPERATIONS

XLS

XLS

XLS

XLS XLS

XLS

XLS

XLS

XLS

XLS XLS

XLS XLS

XLS

XLS

XLS XLS

XLS

XLS

XLS

XLS

XLS XLS

XLS

XLS

XLS

XLS

XLS XLS

XLS

XLS

XLS

XLS

XLS XLS

XLS

XLS

XLS

XLS

XLS XLS

XLS

Q A$100bntax

Financial planning is ready for change

“… from an office of finance focused control effort to one that is more integrated with operational plans.” Gartner

9

6

12

3

Precision | Speed | AlignmentOrchestrating Performance

Smart Planning

Q4 Q1

Q3 Q2

Aggregated | Periodic | RigidControl

Traditional Planning

PrecisionSpeed

Alignment

Strategic Business

Plans

Consolidate, Report &

Analyze

Financial Budgets & Forecasts

Operational Plans

Advanced decision-making requires orchestration

Strategic Business Plans• Long range scenario plans• What-if analysis• Risk analysis• Top-down growth initiatives

Strategic Business

Plans


Analyze


Operational Plans

PrecisionSpeed

Alignment

Advanced decision making requires orchestration

Financial Budgets & Forecasts• Initiatives plans• Zero-based budget• Rolling forecasts• Activity costing• Statistical forecasting

Strategic Business

Plans


Analyze


Operational Plans

PrecisionSpeed

Alignment


Operational Plans• Sales (Territory, Quota,

Capacity)• Marketing (Campaigns,

Events)• Workforce (Headcount,

Capacity)• Supply chain (Supply &

Demand)• IT (Projects, Capital)

Strategic Business

Plans


Analyze


Operational Plans

PrecisionSpeed

Alignment


Consolidate, Report & Analyze• GAAP & IFRS consolidations• Real time reports• KPI’s• Dashboards

Strategic Business

Plans


Analyze


Operational Plans

PrecisionSpeed

Alignment



PrecisionSpeed

Alignment

Strategic Business

Plans


Analyze


Operational Plans

Strategic Business Plans• Long range scenario plans• What-if Analysis• Risk analysis• Top-down growth initiatives

Consolidate, Report & Analyze• GAAP & IFRS consolidations• Real time reports• KPI’s• Dashboards

Operational Plans• Sales (Territory, Quota,

Capacity)• Marketing (Campaigns,

Events)• Workforce (Headcount,

Capacity)• Supply chain (Supply &

Demand)• IT (Projects, Capital)

Financial Budgets & Forecasts• Initiatives plans• Zero-based budget• Rolling forecasts• Activity costing• Statistical forecasting

Advanced decision-making requires a pathPerformance Orchestration

Integrated enterprise planningContinuous forecasting with initiatives Advanced forecasting methodologies

Smart Operational

Planning

Linked financial & operational plansCollaboration with business partnersScenario planning, what-if analyses

Top down, bottom up budgets & plansFormulas reflective of business modelFinance owned & operated

Smart Financial Planning

Valu

e

Smart Planning

Q AThank you!